Lutnick: Amending Steel Tariffs for Europe to Follow Digital Rules Changes
Commerce Secretary Howard Lutnick, speaking after a 90-minute meeting with EU and member country counterparts, explicitly linked changes in digital regulation in the EU to relief on 50% tariffs on steel, aluminum and their derivatives, where the value of the metal is taxed.
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Lutnick and U.S. Trade Representative Jamieson Greer spoke with reporters in Brussels on Nov. 24.
"Our suggestion is that the European Union and their trade ministers deeply consider trying to analyze their digital rules, try to come away with a balance," Lutnick said. "If they can come up with that balanced approach, which I think they can, then we will, together with them, handle the steel and aluminum issues."
He later said if the U.S. is satisfied with the treatment of companies like Google, Amazon and Microsoft, he will "try to come up with a [Section 232] list and a model that works very well for the European Union."
EU Trade Commissioner Maros Sefcovic said he has been communicating how important it is to lower tariffs on steel derivatives from the EU, and noted that industrial machinery on the derivatives list, and robots from European countries are important for America's reindustrialization.
He added that with regard to digital regulation, "Our laws are not discriminatory, they are not aimed at U.S. companies."
A reporter asked Lutnick and Greer if the Europeans convinced them tariffs should be lifted on spirits, wine, "a whole range of other products."
Reporters in Europe wrote that in addition to liquor and wine, EU officials hope that beer, cheese, pasta, olives, olive oil and sunglasses can be exempted from reciprocal tariffs.
Greer replied, "With respect to items that are potentially subject to tariffs or not ... there could be some consideration of other sectors, other items. The most important thing that we do now is implement the joint statement. It's really hard to move on to a ... broader cross-section of the economy before we fully implement the first part of the agreement. The United States has lowered its tariffs, the European Union had their legislative process, going through Parliament, to lower their tariffs. That's all on the right track. We need to have that well in hand before we're able to have that kind of conversation."
However, in an interview with Bloomberg Television, Lutnick left the door open to rolling back tariffs on European foodstuffs.
"We are going through every line item to try to make sure we can drive affordability across the American consumer landscape. That's one of the things we're doing here today, working together to try to bring down prices on average daily products," he said. "The world understands there's give and take in these trade deals."
He said after reciprocal tariffs were removed on coffee, cocoa and bananas, "those prices came down."
In that interview, he also seemed to link lower U.S. tariffs with European positions on the green transition in transportation.
He complained that the EU is "ruling out clean diesel," and instead focusing on electric vehicles. "I try to remind them, you don't make batteries here in Europe! Don't make rules that harm yourself. Stick with combustion engines. Common sense.
"We'll help them grow and build and with great trade with America, but you can't be silly and sort of embrace just batteries, which you don't make in Europe. And we will have a bigger, better, stronger trade deal. We'll add to it, we'll add excitement to it, but you've got to come along with us."